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Best World International shares plunged 50
Singapore cents or 18.45 per cent to finish at S$2.21 on Monday after trading
resumed following a halt that lasted almost five days last week. Heavy selling ensued with some 29.5 million
shares changing hands as investors mulled over Best World's rapid expansion in
China, which had underpinned its high valuations. The direct-selling company, which also
sells premium skincare products to franchisees in China, said over the weekend
that it will order an independent review of its business and accounting
practices, after The Business Times raised questions about the lack of clarity
on how its franchisees operate in China. Best World said it has conducted its
business ethically and in compliance with applicable laws, but "is not
responsible for the accounting and sales records of the franchisees, who are
independent third parties". In any case, it has decided to voluntarily
hire an independent reviewer to address the issues and provide a…

Best World International is hiring an
independent reviewer to scrutinise its business and accounting practices, after
The Business Times raised concerns last week over the challenges in tracking
sales of its DR's Secret line of premium skincare products in China. In a statement on Saturday, the company
told shareholders that it has conducted its business ethically and in compliance
with applicable laws, but “is not responsible for the accounting and sales
records of the franchisees, who are independent third parties”. Until last week, shares of Best World had
been on a multi-year rally, driven by strong growth in China. The group derives
66 per cent of total revenue from sales of the DR’s Secret line of premium
skincare products in China under its franchise model. Revenue is booked when the franchisees in
China purchase inventory from Best World. At least one analyst has pointed to
challenges reconciling between upfront sales figures and underlying consumer
demand in China. Best World…

Best World International shares have soared
171 per cent over the past 12 months, driven by strong growth in China, where
the group derives 66 per cent of total revenue from sales of the DR's Secret
line of premium skincare products. However, it is challenging to figure out
just how and where those sales are taking place, according to new findings by
The Business Times. Analysts who engage in fundamental analysis
to evaluate the stock's intrinsic value have found key data hard to find or
verify. At least one research house has given up
tracking the stock. In August 2018, DBS Group Research analyst
Carmen Tay wrote: "Given challenges in reconciling between upfront sales
figures and underlying consumer demand in China, which have yet to be addressed
under the new franchise model, we will suspend coverage for now." Let's leave aside the upfront sales issue
for now and back up a moment. Best World has direct selling operations in
most markets it operates. While China is th…

SINGAPORE (BLOOMBERG) - Robson Lee had a
decision to make. In his more than two-decade career as a capital-markets
lawyer in Singapore, he'd helped more than 30 companies list on the country's
stock exchange, bringing to market everything from a grocery store chain to a
pawnbroker. Business had been good, but it was starting to dry up. Lee decided
he had to get out. "I saw the decline," he says. "That's why I
moved." That was in 2014, when more companies left
the Singapore Exchange than joined it, with $8.4 billion in value disappearing
from the public market. Lee, now 50, quit his job and became a partner in the
Singapore office of the US law firm Gibson, Dunn & Crutcher LLP. While he
still works on SGX listings, he spends more than three-quarters of his time
helping companies throughout Asia to restructure and make asset purchases. The exchange's fortunes have only gotten
worse. For the last five years, delistings have outnumbered listings in th…

South Korea's giant merger between the
world's two largest shipbuilders could shake up Singapore-listed yard and
offshore players in more ways than one, aside from the oft-speculated but
yet-to-materialise consolidation here. For one, the leading offshore firms and
shipbuilders on the Singapore Exchange could land more jobs as South Korean
stalwarts Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine
Engineering (DSME) iron out the creases that will likely arise over the
integration process. That's good news for the three largest
listed operators - Keppel Corp, Yangzijiang Shipbuilding and Sembcorp Marine
(SMM) - which collectively have a market value of S$20 billion. "We think the integration between HHI
and DSME could soak up resources in the next one to two years. This could bode
well for SMM and Keppel Offshore & Marine (Keppel O&M) as well as
Yangzijiang, allowing them to gain market share in the O&M and shipbuilding
space," said CGS…